Pakistan Tax Research Centre set up in southwest China

Pakistan Tax Research Centre set up in southwest China that will provide insights on Pakistan’s taxation system and keep track of developments.

The Pakistan Taxation Research and Consulting Centre was officially launched by the Chongqing Municipal Tax Service. This center will focus on studying Pakistan’s taxation system, tracking policy developments, and analyzing how Pakistan’s tax policies, legal framework, and tax management model affect China-Pakistan economic cooperation, especially in the context of CPEC. It will also provide tax-related consultation and advice to Chinese companies investing in Pakistan.

For several years, China has been Pakistan’s largest trading partner and top source of imports, while also being its second-largest export destination. In 2023, bilateral trade between the two nations exceeded $20 billion.

Since 2015, the Chongqing Municipal Tax Service has formed a dedicated team to continuously study Pakistan’s tax policies, aiding Chinese companies with accurate and timely insights to mitigate tax risks while investing in Pakistan. This initiative is particularly aimed at helping those who are already invested or planning to invest.

Pakistan’s Tax System under FBR

Hamid Atiq Sarwar, Deputy Director of the Internal Revenue Bureau at Pakistan’s Federal Board of Revenue (FBR), attended the launch ceremony virtually. FBR officials highlighted Pakistan’s tax system and preferential tax policies, including exemptions and subsidies designed to attract investment.

Hali, Deputy General Manager of China Energy Construction Gezhouba Group’s Pakistan branch, expressed optimism, stating that cooperation between Chinese and Pakistani tax authorities will enhance the prospects for Chinese businesses operating in Pakistan.

From 2015 onwards, the Chongqing team has also compiled the “Tax Guide for Chinese Residents Investing in Pakistan” and continues to release updates on Pakistan’s tax policies, ensuring that Chinese investors remain informed and able to reduce tax risks effectively. This also provides information to Chinese investors regarding investment.